Roadmap to an Equitable, Robust and Competitive Economy
INTRODUCTION
Maryland is on the move. As the world transitions to the new competitive realities of the evolving global economy, Maryland has an opportunity to focus our many assets and talented people to lead in the next generation of technology and innovation. The future demands the talent and innovation that Maryland creates. It is imperative that the State focus its efforts on increasing its economic competitiveness to deliver tangible benefits to the 6.2 million Marylanders and 670,000 businesses that call Maryland home. 1
The Maryland Department of Commerce, in partnership with the Maryland Economic Development Commission (MEDC), has developed the economic development strategy summarized here to provide a roadmap for assembling the necessary collaboration, concerted effort, and resources that will realize the potential of our rich assets and talented people. This strategy acknowledges the breadth of our diverse economy and assets while charting a new course for some of our most promising industries. By emphasizing and strategically nurturing high-growth subsectors, we will be delivering new, cutting-edge capabilities to these critical areas of the national and global economies. Leadership in these industries is the avenue to continued economic prosperity in the decades to come, continuing Maryland’s long history as the ideal state to live, work, and build a future.
STRATEGICALLY POSITIONED TO INNOVATE
Maryland’s unique combination of assets positions the state well to both supply the talent base and accelerate sectors needed to further catalyze economic growth. The state’s economic development story is anchored by its strategic location, vibrant economic outlook, and ability to lead investment in crucial technology sectors that will have an immensely positive impact on the nation’s economic outlook. Maryland is a place where businesses and people along the entire socioeconomic spectrum can thrive. With continued investments in developing a highly educated and skilled workforce, Marylanders will be afforded with myriad opportunities to participate in the broader economy. With an established reputation as a hub for leading technologies and life sciences, and strong capabilities in aerospace, Maryland has the foundation to achieve unparalleled economic success. Leveraging lessons from its own strong history of reinvention and proven economic development strategies, Maryland is poised to strengthen its leadership in biotechnology, quantum technologies and aerospace.
WINNING THE DECADE:
SETTING THE STAGE
Maryland’s economic narrative is deeply rooted in its historical ties to federal government operations and its role as a critical defense and national security hub. The state’s proximity to Washington, D.C., provides unparalleled access to decision-makers and funding streams, while its diverse economy bridges urban innovation centers with rural economic opportunities. Drawing inspiration from its long history of reinvention, a strong manufacturing and industrial base and history of fostering regional innovation, Maryland is poised to amplify its unique strengths into a vision for the future.
The state’s rich history, world-class institutions, dynamic cultural fabric and talented workforce have positioned it as a leader in numerous industries. As it looks to the future, Maryland must continue to build on its strengths and embrace emerging technologies to drive economic growth and improve the lives of citizens.
This strategic plan outlines a bold vision for Maryland’s future that supports the expansion of existing economic pillars while focusing on three key high-growth sectors: Quantum Technology, Computational Biology, and Position, Navigation, & Timing (PNT). By investing in these areas, we can accelerate innovation, create high-paying jobs, and enhance our state’s global competitiveness. The Moore-Miller Administration is committed to the overall health of the Maryland economy. We will continue to support all industries and businesses in Maryland, fostering a diverse and resilient economy. By strategically investing in these high-growth sectors, we can amplify the impact of our efforts and ensure a prosperous future for all Marylanders.
BUILDING ON A SOLID FOUNDATION
FEDERAL GOVERNMENT HUB
Maryland’s proximity to Washington, D.C., makes it an unrivaled location for federal collaboration. The state hosts a network of federal contractors and government institutions, offering a foundation for efficient and focused growth in public-sector technology solutions. Agencies like the Naval Air Systems Command (NAVAIR), Aberdeen Proving Ground (APG), National Institutes of Health (NIH), Food and Drug Administration (FDA), Centers for Medicare & Medicaid Services (CMS), United States Cyber Command (CYBERCOM), National Aeronautics and Aerospace Administration (NASA) and the National Security Agency (NSA) are major drivers of innovation and economic growth in the state. This unique concentration of federal agencies has created a powerful talent development engine, fostering a deep pool of expertise in critical areas like cybersecurity, biotechnology and aerospace technology. Our talent pipeline, in turn, fuels the state’s thriving private sector and contributes to the nation’s overall security and economic competitiveness.
Action Plan: Maryland will deepen partnerships with federal agencies, leveraging ”Innovation Incubators” designed to develop technologies for cybersecurity, energy resilience and public safety. Infrastructure upgrades will ensure the state continues to attract federal conferences, summits, and research and development opportunities.
WINNING THE DECADE:
TECHNOLOGY AND INNOVATION HUB
Maryland is a global leader in technology and innovation, with a particular focus on cybersecurity. However, the state’s technology sector extends far beyond cybersecurity, encompassing a wide range of industries, including life sciences, artificial intelligence, advanced manufacturing, biotechnology, aerospace and — crucially — quantum technologies.
Maryland’s rich history in quantum technology research, with institutions like the University of Maryland leading the way in this emerging field, make the state the natural home to the next wave of technical breakthroughs. Combining quantum computing with traditional technologies, Maryland can drive innovation in our existing legacy industries and open the door to new opportunities in health care delivery, materials science and finance. This integration of quantum computing with existing sectors highlights the state’s commitment to technological advancement and its potential to shape the future of industry and society.
Action Plan: Maryland will launch technology-focused districts, including ”Smart Innovation Zones” to pilot quantum computing and AI integration in urban systems. The state will also accelerate ”Innovation Corridors,” fostering collaboration between private tech firms, universities and government agencies to accelerate advancements in biotechnology, quantum technology, cybersecurity and aerospace.
LIFE SCIENCES HUB
Maryland’s historic prominence in the life sciences provides a platform for leading advancements in personalized medicine, biotechnology and pharmaceutical development. Maryland has emerged as a leading hub for life sciences innovation. The state’s world-class research institutions, including Johns Hopkins University and the University of Maryland, are at the forefront of groundbreaking research in biotechnology, medical research and pharmaceutical development. This strong foundation has attracted numerous biotech and pharmaceutical companies to the state, creating a thriving ecosystem of innovation and job growth.
Action Plan: To significantly enhance the current life sciences cluster, Maryland will attract investment in areas like computational biology, biomanufacturing and advanced health care R&D. Collaboration with institutions like University of Maryland and Johns Hopkins University will drive innovation, while incentives will encourage biotech startups to relocate to the state.
WINNING THE DECADE:
AEROSPACE HUB
Maryland’s strategic location and strong ties to the federal government make it a natural leader in the aerospace industry. The state is home to NASA’s Goddard Space Flight Center, a worldrenowned center for space exploration and Earth science research and the Naval Air Systems Command (NAVAIR), renowned for its prowess in naval aviation technology. Additionally, Maryland boasts a robust aviation industry, with a focus on commercial aviation, unmanned aerial systems (drones) and aerospace manufacturing. This strong aerospace sector contributes significantly to the state’s economy and national security.
Action Plan: The state will continue to enhance existing "Aerospace Innovation Corridors," focusing on next generation aviation technologies and the explosive opportunities presented by further investment in position, navigation and timing (PNT). By fostering partnerships with federal institutions like NAVAIR, NASA and the private sector, Maryland will continue to lead in next-generation drone and satellite technologies.
CREATIVE ECONOMIC DEVELOPMENT STRATEGIES
Maryland, a state steeped in history and innovation, is poised to solidify its position as a global economic leader in a nation that increasingly relies on innovative technologies as a source of national competitive advantage. Maryland has a rich tradition of innovating, from the Chesapeake Bay’s proud maritime heritage to discoveries that drive advancements in space technology. With an extensive legacy in research, life sciences and technology, Maryland is uniquely positioned to lead the next wave of economic growth.
Rigorous analysis of Maryland’s economic strengths and future global trends has identified three key sectors for strategic investment: quantum technology, computational biology, and position, navigation and timing (PNT) in the aerospace sector. These sectors leverage Maryland’s existing assets and offer immense potential for growth and innovation.
LIFE SCIENCES
Computational Biology
Reframing biological systems into mathematical models to apply cutting-edge technologies for discovery of novel insights.
TECHNOLOGY
Quantum Computing
Applying quantum physics to drive exponential improvements in computation, sensing and communications.
AEROSPACE
Position, Navigation & Timing
Cutting-edge technologies for precision guidance, navigation, and positioning equipment in aerial, terrestrial, maritime and space exploration.
Maryland’s reputation as a global innovation hub is well deserved. The state boasts a strong foundation in key industries, including research and development, cybersecurity, life sciences and aerospace. Maryland is a national leader in R&D: It is ranked first for academic sciences and engineering R&D as a share of GDP. In 2022, its institutions received $2 billion in Life Sciences R&D funding and $1.5 billion in Engineering R&D. 2 As home to numerous federal cybersecurity agencies and private sector companies, Maryland is a global leader in cybersecurity, AI and quantum technology. The state’s thriving biotech industry and world-class research institutions position Maryland as a major player in the life sciences sector. Additionally, Maryland’s strong aerospace industry, including its proximity to NASA Goddard Space Flight Center and multiple military installations, positions the state as a key player in aviation, space exploration and the satellite technologies that allow us to chase every horizon.
By investing in quantum technology, computational biology and PNT, Maryland will further solidify its critical role in the global economy, enabling Marylanders to grasp the economic opportunities inherent to leadership in the industries that drive the future.
WINNING THE DECADE:
QUANTUM TECHNOLOGIES LEADERSHIP
Maryland is a global leader in quantum technology. We are at the start of a new wave of economic growth and high-quality jobs necessary to commercialize and deliver the advantages of quantum technology to the whole world. The state’s strong foundation in physics, computer science and engineering, coupled with its world-class research institutions, provide a fertile ground for quantum innovation. Maryland is creating a new economic paradigm, spanning high-tech research to manufacturing and support services. The commercialization of quantum technologies, including quantum computing and quantum communication, requires specialized manufacturing facilities for components and systems, including advanced cooling systems and precision engineering. Demand for skilled workers in various fields, from engineers and technicians to manufacturing specialists and logistics experts, has only just begun, and will continue to grow as quantum’s many benefits are realized.
Quantum computing technologies have the potential to drive significant economic development by unlocking new capabilities in fields such as drug discovery, materials science and financial modeling. Its ability to process vast amounts of data and perform complex calculations at unprecedented speeds will accelerate innovation, reduce costs and create new business areas. The cross-cutting advantages for other Maryland industries are tremendous, as industries like pharmaceuticals bring life-saving treatments to market faster, while sectors like logistics and supply chain management achieve greater efficiency. Additionally, quantum computing can enhance Maryland’s existing investments in artificial intelligence to produce more sophisticated and high-impact technologies, thus fostering economic growth and creating high-value jobs.
COMPUTATIONAL BIOLOGY LEADERSHIP
For the State of Maryland, continued investments in computational biology will significantly boost economic development by advancing research in areas like personalized medicine, drug discovery and agriculture. By leveraging powerful algorithms, it enables practitioners to analyze vast biological data, uncovering insights into disease mechanisms, genetic variations and potential therapies more efficiently. This will accelerate the development of targeted treatments and cures, reducing health care costs and improving outcomes. For Maryland, a state known for its agricultural heritage, computational biology can enhance crop yields and sustainability, supporting food security. Moreover, breakthroughs in biotechnology can spur innovation, create high-tech jobs and fuel the growth of biotech startups, and drive economic growth across multiple sectors. Maryland continues to be a global leader in computational medicine. The state’s strong foundation in biotechnology, coupled with its world-class research institutions, provides a fertile ground for innovation in this field.
Furthermore, by leveraging advances in artificial intelligence, machine learning and big data analytics, computational medicine is revolutionizing health care. Maryland’s strong technology sector, including its expertise in data science and software engineering, contributes to the development of cutting-edge computational tools and algorithms.
Maryland is doubling down on our commitment to computational biology to realize benefits for all Marylanders and beyond:
• Accelerate Drug Discovery: Develop innovative computational tools to identify and design new drugs more efficiently.
• Improve Patient Care: Utilize AI-powered diagnostics and personalized medicine to enhance patient outcomes.
• Advance Biomedical Research: Analyze large datasets to uncover new insights into disease mechanisms and treatments.
• Stimulate Economic Growth: Create high-paying jobs in biotechnology, pharmaceutical and technology sectors.
AEROSPACE LEADERSHIP WINNING THE DECADE:
Position, navigation and timing (PNT) technologies are crucial drivers of economic development within the aerospace industry, enabling more efficient transportation, logistics, and communication systems. Advanced PNT systems, such as GPS and emerging satellite technologies, improve accuracy and reliability for air and space navigation, reducing delays and enhancing safety. Not only does this lower operational costs, but it also supports industries critical to Maryland’s role, including in the areas of aviation, precision agriculture, autonomous vehicles and disaster response. PNT technologies stimulate innovation, create high-tech jobs, and foster new markets contributing to economic growth across a wide range of sectors.
Maryland’s strategic location, strong research institutions and robust technology sector position it as an ideal location to be a leader in PNT. The state’s concentration of federal agencies, including the NASA Goddard SpaceFlight Center, NAVAIR, and the National Institute of Standards and Technology, provides a strong foundation for PNT research and development.
By leveraging its existing strengths, Maryland capitalizes on the growing demand for PNT technologies across various industries. The state’s strong aerospace industry, coupled with its expertise in satellite technology and space exploration, further enhances its PNT capabilities. Additionally, Maryland’s thriving technology sector, including its focus on artificial intelligence and cybersecurity, contribute to the development of advanced PNT applications.
Beyond aerospace and technology, Maryland leverages PNT to benefit other sectors of its economy. For example, the state’s agriculture industry utilizes PNT for precision agriculture, optimizing resource use and increasing crop yields. The transportation sector, including aviation, maritime and automotive industries, will benefit from advanced PNT technologies for navigation, safety and efficiency. Even the energy sector leverages PNT for renewable energy projects, such as solar and wind farms, as well as for efficiency in infrastructure planning and distribution optimization.
USING STRATEGIC INVESTMENT AS A FORCE MULTIPLIER
Capitalizing on these opportunities, Maryland will continue to grow and attract top talent, national and global companies, foster groundbreaking research, and create high-paying jobs that will benefit Marylanders for generations to come. Maryland possesses a robust ecosystem that supports innovation, from groundbreaking research to commercialization. Our world-class universities and research institutions, such as the University System of Maryland, Johns Hopkins University and the National Institutes of Health (NIH), are at the forefront of scientific discovery. Coupled with federal entities like the National Institute of Standards and Technology (NIST) and the NASA Goddard Space Flight Center, Maryland is a hotbed of innovation that produces a steady stream of groundbreaking research in quantum computing, computational medicine and PNT.
An outstanding system of community colleges also plays a crucial role in developing the valuable skilled workforce these cutting-edge industries demand. With dynamic and flexible training curricula that reflect the current needs of our industry-leading businesses, Maryland’s educational assets are a strategic resource for Maryland companies and workers. Our expansive network of educational institutions nurture the next generation of craftspeople, tradeworkers and innovators who are shaping the future, today.
The deep collection of Maryland intellectual capital and know-how is the foundation upon which Maryland’s future industries will be built. By investing in these sectors, we will drive innovation, protect intellectual property, nurture startups, develop advanced manufacturing capabilities, and own Maryland’s place as a global leader in these critical industries. These investments ensure that Maryland remains at the forefront of technological advancement and economic growth, continuing the proud tradition of Marylanders serving our nation by building a safer, stronger and more prosperous future.
Cross-Sector Synergies
Maryland is at a crossroads, uniting its strengths in innovation across aerospace, life sciences and technology. Initiatives like developing PNT solutions for space exploration or utilizing biotechnology in defense applications will underscore the state’s leadership in cross-disciplinary innovation.
Place-Based Economic Development
Maryland’s emphasis on regional hubs is a key driver of its success. Maryland will remain a global technology hub, while areas across the Maryland jurisdictions will grow as leaders in biotechnology and aerospace creating diversified opportunities across the state.
Workforce Development
Maryland’s workforce is its backbone, and initiatives like the EARN Maryland and Maryland Apprenticeship and Training Program efforts will ensure a steady stream of highly skilled workers for the state’s industries. Our investments in local community colleges will be complemented by STEM accelerator programs, broadening access to STEM careers for underserved communities.
Sustainability and Resilience
Maryland will lead in clean energy adoption, integrating sustainable practices across all sectors. Initiatives like supporting green infrastructure in urban centers and renewable energy programs in rural areas where feasible will position the state as a model for environmentally responsible growth.
Roadmap to an Equitable, Robust and Competitive
STRATEGIC PRIORITIES AND INITIATIVES FOR GROWTH AND DEVELOPMENT
BOOSTING TARGET SECTORS AND EMERGING BIG BETS
Maryland is developing an informed and focused sector development strategy that boosts those industries most likely to ensure a robust, equitable, and competitive economy. This proactive approach is designed to overcome current headwinds and catalyze growth. Maryland has been caught in a period of economic stagnation over the past five years, with GDP growth outpaced by the US average. In addition, the current incentive model, while efficient in terms of ROI, has been disproportionately skewed towards retention vs. attraction, with the portfolio overly concentrated in non-tradeable sectors that do not contribute directly to economic growth. Gleaning lessons from peer benchmark states in terms of targeted expenditures and focus, Maryland will focus on those sectors projected to deliver outsized economic contribution across different metrics, including job growth and regional equity. Maryland’s strategy focuses on delivering two broad groups of asset sectors: those that drive job quality, growth and economic impact (e.g., Professional Services, Technology and Life Sciences) and those that support balanced growth for all Marylanders (e.g., Manufacturing, Tourism).
WINNING THE DECADE:
Initiative 1: Lighthouse Sector Strategy — This strategy will prioritize lighthouse sectors that are forecast to have a significant national — and global — economic contribution, and provide proactive strategies, investments and capabilities to deliver outsized performance (e.g. deals, jobs, capital investment). As noted above, Quantum Technologies, Position, Navigation, and Timing (PNT), and Computational Biology represent a compelling and high-potential portfolio on which to focus Maryland’s efforts to establish and expand industry leadership and leverage existing economic assets for the benefit of all Marylanders. Maryland’s unique assets, which include a highly educated workforce, world-leading academic and federal institutions, and an existing leadership role within these cutting edge industries, position the state to drive these particular subsectors forward, creating exciting avenues of growth and advancement for adjacent subsectors in their respective industries further catalyzing economic growth.
Initiative 2: Strategic Closing Fund — The fund will be a new, at-scale, catalytic incentive program focused on winning anchor deals in target sectors that can boost the state’s growth and competitiveness. The scale of Maryland’s economic growth ambitions must be met by the scale needed to land anchor deals (i.e. $500 million+ investments) and in line with the shifting focus from retention to attraction. Implementing this strategy involves several steps, including the announcement of a Maryland Moves fund and the formalization of the Sunny Day fund with tailored financial packages to incentivize companies to move to Maryland that are tied to specific requirements (e.g., ROI threshold, target industry, job creation, regional considerations). Existing assets (e.g., site selection, local government, research institutions and sector player resources) can also be leveraged to further enhance the diversity and richness of the experience for companies seeking to grow in Maryland.
CREATING A WORLD-CLASS INNOVATION
PIPELINE THAT FLOWS FROM R&D TO FIRMS
By building a world-class innovation pipeline, Maryland is turning its inherent strengths in ideas and R&D into a dramatic acceleration in the number of startups and growth companies that want to stay in-state. Maryland is an established leader at the early end of the innovation funnel, which includes areas such as academic science and engineering R&D. To dramatically increase its overall level of competitiveness, Maryland is directly addressing challenges associated with the current levels of commercialization, incubation of the startup ecosystem, and company scaling and growth. Maryland startups have attracted the 11th-most venture capital funding in the country, normalized for economy size.3 It has world-class state-sponsored vehicles helping promote the innovation economy. For example, TEDCO has contributed $2.7 billion in economic activity and 12,082 jobs in Maryland,4 and is the second-most prolific investor in the mid-Atlantic.5 Notwithstanding the robustness of the state’s support for the startup ecosystem, there is a need for greater diversity within the startup ecosystem. Addressing the disproportionately small amount of venture capital that goes towards women-owned, Black and minority-founded startups, is an urgent priority.
Initiative 3: Idea Challenge — Idea challenge is proposed as a statewide competition to encourage students and professors at Maryland’s universities and colleges to commercialize their ideas and research, and potentially transform them into business. In doing so, it can facilitate the retention of a diverse group of graduates in the state. Innovative asset sectors for the state, such as Technology (e.g., Cybersecurity, AI, Nanotechnology), Aerospace (e.g., Drones), and Life Sciences, will be the focus of the competition. Maryland possesses a diverse mix of ecosystems partners with the knowhow to drive innovation and growth, including the Maryland Innovation Initiative (MII), housed within TEDCO; Johns Hopkins Technology Ventures (JHTV); and UM Ventures, which can aid in the translation of academic research into technologies and startups.
Initiative 4: Commercialization Unit — Maryland will deploy a team with deep expertise in commercialization to support and coordinate among existing organizations (e.g. TEDCO, MII, JHTV, UM Ventures, Blackbird Labs). The state’s prowess in research and development is concentrated in federally funded collaborations, leaving great opportunity to expand private and commercial partnerships. Maryland will enact this strategy by building on both commercialization best practices gleaned from other states, regions and entities coupled with the required expertise to effectively execute efforts and ensure effective funding is deployed.
Initiative 5: Venture Catalyst — Maryland will leverage existing assets in the state including TEDCO and JHU Technology Ventures. The program will increase access to venture capital funding and to close the gap in Maryland for those firms seeking Series A investment funds and beyond. It will establish a regional network of VC funders that will also include other funders with an interest in Maryland. It will also encourage institutional investors to orient their sizable funding vehicles towards venture capital in the state.
EXTENDING MARYLAND’S TALENT ADVANTAGE
BY BUILDING AN EQUITY-FORWARD, INCLUSIVE WORKFORCE
Maryland has one of the strongest talent pools in the country. It ranks third in educational attainment, based on the share of population with at least a bachelor’s degree.6 It is a Top ten state in job specialization across key roles such as Computer Occupations, Math Occupations, Engineers, Business Operations Specialists, and Life Scientists. In fact, Maryland has a specialization 2.5x greater than the U.S. average for Life Scientists.7 Maryland is leveraging its existing talent strengths while developing equity-forward programs that serve the dual purpose of ensuring no Marylander is left behind and helping companies locate to — and thrive within—the state. Maryland understands that access to a diverse and vibrant talent base is the No. 1 location decision factor for companies, especially those within Maryland’s target sectors. It is also a strength of Maryland, which is a Top ten state in specialization for multiple key roles, from Computer Occupations to Engineers to Life Scientists.
The Moore-Miller Administration has continued to invest in the state’s talent. As stated in the 2024 State Plan, it has funded “$8.7 billion in K-12 public education, $900 million for the education Blueprint, $422 million toward Maryland’s Historically Black Colleges and Universities (HBCUs), and $393 million for Maryland’s community colleges.” As part of the strategic intent, this plan is focusing on addressing the underrepresentation of some Marylanders in high-income occupations. Extending Maryland’s talent advantage will fill critical gaps, while charting a future that is more prosperous and equitable.
Initiative 6: Focused Sector/Occupation EARN expansion (EARN+) — EARN Maryland is an existing workforce development program based on employer-led industry partnerships. EARN+ is proposed to expand the program to target key occupations and growth sectors. EARN+ will leverage the state’s robust network of training providers to cocreate solutions, e.g., by matching companies with universities, community colleges or boot camps. EARN+ will also be incorporated into business attraction efforts, including training-focused business attraction incentives. EARN+ will not only boost talent supply in key industries, it will also help a diverse set of Marylanders access quality jobs.
Initiative 7: Enhanced Talent Innovation Fund — The Talent Innovation Fund (TIF) increases access to high-quality job training by using innovative and sustainable talent financing mechanisms to help meet skill needs in Maryland’s prominent and emerging industry sectors. Maryland will bolster investments in the TIF with a focus on high-salary jobs that require sizable upfront costs in skills training (e.g., nurses, cybersecurity professionals, machinists). In addition, the fund will seek to better balance talent imbalances across key sectors by providing skills training for in-demand, well-paid jobs for a diverse set of Marylanders.
TRACKING SUCCESS
To effectively measure the success of all of our strategy and planned investments, particularly those in quantum technology, computational biology and PNT, we must establish a comprehensive framework that aligns with our long-term goals. This framework will focus on key performance indicators (KPIs) that reflect economic growth, job creation, innovation, and quality of life.
Economic Growth and Job Creation: We will track the state’s GDP growth and its leading indicators, particularly in the targeted sectors, to measure economic impact. Monitoring job growth in these sectors, both in quantity and quality, will assess the direct impact on Marylanders’ quality of life. Measuring the amount of private and public investment attracted to the state, especially in these sectors, will indicate the confidence of the market in the effectiveness of the state’s focused efforts.
Innovation and Technological Advancement: We will track the number of patents filed by Maryland-based companies, particularly in the target sectors, to measure innovation output. Monitoring the number of scientific publications and citations from Maryland institutions will assess research productivity with a goal of maintaining the state institutions’ strong federal R&D relationships while expanding commercially funded research. Tracking the number of startups founded in these sectors and their success rates will gauge entrepreneurial activity. We will also track the number of jobs created by startups in their early stages and their rate of growth and retention of employees.
Quality of Life and Community Impact: We will measure improvements in STEM education and workforce training to assess the long-term impact on the workforce. Tracking the diversity of the workforce in these sectors and across the state’s varied regional economies will ensure equitable opportunities for all and encourage a tailored approach to drive impact in every community. Monitoring indicators like housing affordability, health care access, and public safety will assess the overall quality of life.
By regularly tracking and analyzing these KPIs, we can assess the effectiveness of our investments and make data-driven decisions to optimize our strategy. Additionally, we can use these metrics to communicate the value of our investments to policymakers, the public and potential investors.
LONG-TERM GOALS AND VISION REALIZATION
As noted by various stakeholders, other states have invested significantly in their target sectors. In 2008, Massachusetts committed a $1 billion investment over 10 years in life sciences.8 In 2024, Massachusetts Governor Healey proposed a $1 billion, 10-year reauthorization of the Life Sciences Initiative.9 In terms of incentives, Massachusetts spends more than double Maryland’s share on life sciences (31% compared to 14%).10
Texas voters launched the $3 billion Cancer Prevention & Research Institute of Texas (CPRIT) in 2007 and passed an additional $3 billion in funding in 2019, ”the largest state cancer research investment in the history of the United States.”11 CPRIT’s impact includes the recruitment of 313 researchers and their labs to the state, over ”$3.29 billion in direct follow-on funding raised by CPRIT grantees,” and ”67 companies started, expanded, or brought to Texas with CPRIT investment totaling $714 million.”12
Maryland has long demonstrated that its capacity for reinvention and innovation is both a source of pride and a point of competitive advantage. To realize the ambitions of the strategy outlined in the economic development plan and to effectively measure the success of our investments in the targeted sectors and more broadly, we must execute this comprehensive framework with a nimbleness that allows us to dynamically pursue the plan to fully realize our long-term goals. Within the decade, Maryland aims to:
• Be globally recognized for its investment and leadership in computational biology, position, navigation and timing, and quantum technology.
• Continue to lead the nation in federal research and development and expand commercial collaboration output, with key advancements in cybersecurity, life sciences, clean energy and AI.
• Achieve equitable economic growth, ensuring that both urban and rural regions share in the state’s prosperity.
WINNING THE DECADE:
CONCLUSION
Maryland’s economic future is bright, built on a foundation of strategic strengths, innovation and a commitment to inclusivity. As the state looks to the future, it invites stakeholders — businesses, investors, educators and citizens — to join in creating a thriving, resilient economy. Together, Maryland will not just meet the challenges of tomorrow, but will define them, solidifying its place as a national and global leader in economic prosperity.
Maryland stands at the crossroads of tradition and innovation, uniquely positioned to lead the nation in economic development. The Maryland economic development story is anchored by its history of government and defense contracting while aggressively growing into a leader in life sciences, quantum technology, aerospace and clean energy. With its strategic location and as home to many federal agencies, an established reputation as a hub for technology and life sciences, and strong capabilities in aerospace, Maryland has the foundation to achieve unparalleled economic success. Leveraging lessons from its own strong history of reinvention and its proven strategies in place-based economic development, Maryland is poised to strengthen its leadership in technology, life sciences, and aerospace and defense. This vision sets forth a bold strategy to transform Maryland into a sustainable, inclusive and innovative economic powerhouse.
CITATIONS
1. U.S. Small Business Administration Office Advocacy 2024 Small Business Profile for Maryland
2. National Science Foundation Higher Education Research and Development Survey
3. Pitchbook
4. University of Baltimore, Jacob France Institute analysis, "The Economic and Fiscal Impacts of TEDCO’s Seven Core Programs — FY2023," which noted that "the companies created or supported by the seven core TEDCO programs generated a total of $2.7 billion in Maryland economic activity in 2023, supporting a total of 12,082 jobs"
5. TEDCO, State of the Startup, FY23
6. U.S. Census, American Community Survey, 2022 1-Year Estimates, survey S1501
7. Lightcast
8. Government of Massachusetts, Life Sciences Initiative, FY2010 House 1 Budget Recommendation: Policy Brief
9. Government of Massachusetts, Press Release, 2024
10. Compares Maryland Commerce Consolidated Finance Tracker Data (used for Maryland share) and FDI Intelligence Incentives Flow (used for Massachusetts data)
11. Cancer Prevention & Research Institute of Texas (CPRIT), Website
12. Cancer Prevention & Research Institute of Texas (CPRIT), May 2024 "Real Momentum" report
Wes Moore, Governor Aruna Miller, Lt. Governor
For more information, contact: Karen Glenn Hood Director, Office of Communications karen.glennhood@maryland.gov
